A trading update by Vimto producer Nichols confirms it bounced back last year from the early effects of the pandemic when out-of-home (OoH) drink sales plummeted.
For the 12 months to 31 December 2021, the group’s revenue climbed 22% to £144.3m.
The business stated that its Vimto range had enjoyed a “strong performance” with its brand value in the UK increasing by 5.6% YTD (Nielsen data as of 4 December 2021). Meanwhile, the brand’s international revenues saw “double-digit” growth versus the prior year.
Nichols’ OoH route to market continued to recover from the impact of the pandemic and saw growth of 77% year-on-year. However, versus 2019, OoH revenues remain down by 31%.
The group said it expects to report adjusted profit before tax for the full year of between £21m-£22m, which is in line with previous guidance.
Nichols concluded the trading statement by saying: “Given the ongoing impact of the coronavirus pandemic on the OoH drinks market, and current profitability within this route to market, the board is currently revisiting the estimates it uses to support the OoH balance sheet carrying value as part of preparing the group’s audited annual results. It is expected that the Goodwill, or part of it, reported on the balance sheet will be impaired.
“The full review is currently underway and the Group will report on the final outcome with its preliminary results. Any adjustment will be exceptional and non-cash.”
It added: “While recognising continued revenue momentum into 2022, the group adjusted PBT expectations for the year FY22 remain unchanged.”
Nichols is due to publish its full 2021 preliminary results on 2 March.
